23.11.2012 Re Projects in Romania

LUKOIL OVERSEAS BRINGS NEW PARTNER INTO ITS OFFSHORE BLACK SEA PROJECTS IN ROMANIA

LUKOIL Overseas, an OAO LUKOIL subsidiary, has signed a deal on the reassignment to Romania’s national gas company Romgaz of an 8-percent share of the rights and obligations under concession agreements for hydrocarbon exploration, development and production on the Est Rapsodia and Trident blocks in the Romanian sector of the Black Sea.

Previously, the Est Rapsodia and Trident projects were implemented by a consortium, including LUKOIL Overseas (80%, operator) and Vanco International (20%). As a result of the transaction, Romgaz acquired a total of 10% in the projects: 8% was reassigned by LUKOIL Overseas and 2% came from Vanco International. Currently, the stakes in the projects are: LUKOIL Overseas, 72%, Vanco International, 18%, and Romgaz, 10%.

The projects were awarded to LUKOIL Overseas and Vanco International who emerged victorious in the biddings held in June of 2010. The concession agreements for the projects were signed in February of 2011 and ratified by the Romanian Government in October of that year. An environmental impact assessment was carried out and public environmental hearings were held in connection with the projects and relevant permits were obtained from respective state and local authorities.